Connect with us

By the Numbers: Sliding Prices

Published

on

David Brown warns of falling average sale prices in U.S. jewelry stores.

 

{loadposition davidbrownheader}

[h3]Sliding Prices[/h3]

By the Numbers: Sliding Prices

[dropcap cap=T]he average sale at your typical U.S. jeweler seems to be locked in terminal decline, falling from $214 in April 2008 to a new low of $143 as of February this year. What’s most alarming about this drop in the 12-month rolling average is that it shows no real sign of reversing. And with January and February being significantly below the long-term average, it may be poised to drop further. What’s driving this precipitous fall? Our suspicion is that it is because jewelers stopped buying higher priced goods, and sales associates stopped showing them, apparently because they were convinced shoppers didn’t have the money to buy them. [/dropcap]

Advertisement

If your average sale is sinking, you face a very difficult job in improving your overall sales — the increase in volume would need to be huge. A much better way is to focus on improving average value. Here are five steps to do that:

1. BUY UP: Aim to bring in goods that will retail 30 percent higher than current inventory.
2. MARK UP: Increase your markups.
3. ROUND UP: Hike those unusual prices like $172.50 to the nearest standard price, like $179.
4. SELL UP: Show customers your best goods in any category first.
5. SHUT UP: Rein in those discounts.


David Brown is president of the Edge Retail Academy, an organization devoted to the ongoing measurement and growth of jewelry store performance and profitability. You can contact him at [email protected]

[span class=note]This story is from the May 2010 edition of INSTORE[/span]

If you’d like to contribute your own data and receive a personalized KPI report each month, call (877) 910-3343 or e-mail: [email protected].

{loadposition xtra-browncolumn}

Advertisement

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials

If It’s Time to Consolidate, It’s Time to Call Wilkerson

When Tom Moses decided to close one of the two Moses Jewelers stores in western Pennsylvania, it was time to call in the experts. After reviewing two candidates, Moses, a co-owner of the 72 year-old business, decided to go with Wilkerson. The sale went better than expected. Concerned about running it during the pandemic, Moses says it might have helped the sale. “People wanted to get out, so there was pent-up demand,” he says. “Folks were not traveling so there was disposable income, and we don’t recall a single client commenting to us, feeling uncomfortable. It was busy in here!” And perhaps most importantly, Wilkerson was easy to deal with, he says, and Susan, their personal Wilkerson consultant, was knowledgeable, organized and “really good.” Now, the company can focus on their remaining location — without the hassle of carrying over merchandise that either wouldn’t fit or hadn’t sold. “The decision to hire Wilkerson was a good one,” says Moses.

Promoted Headlines

Most Popular

David Brown

By the Numbers: Sliding Prices

Published

on

David Brown warns of falling average sale prices in U.S. jewelry stores.

 

{loadposition davidbrownheader}

[h3]Sliding Prices[/h3]

By the Numbers: Sliding Prices

Advertisement

[dropcap cap=T]he average sale at your typical U.S. jeweler seems to be locked in terminal decline, falling from $214 in April 2008 to a new low of $143 as of February this year. What’s most alarming about this drop in the 12-month rolling average is that it shows no real sign of reversing. And with January and February being significantly below the long-term average, it may be poised to drop further. What’s driving this precipitous fall? Our suspicion is that it is because jewelers stopped buying higher priced goods, and sales associates stopped showing them, apparently because they were convinced shoppers didn’t have the money to buy them. [/dropcap]

If your average sale is sinking, you face a very difficult job in improving your overall sales — the increase in volume would need to be huge. A much better way is to focus on improving average value. Here are five steps to do that:

1. BUY UP: Aim to bring in goods that will retail 30 percent higher than current inventory.
2. MARK UP: Increase your markups.
3. ROUND UP: Hike those unusual prices like $172.50 to the nearest standard price, like $179.
4. SELL UP: Show customers your best goods in any category first.
5. SHUT UP: Rein in those discounts.


David Brown is president of the Edge Retail Academy, an organization devoted to the ongoing measurement and growth of jewelry store performance and profitability. You can contact him at [email protected]

[span class=note]This story is from the May 2010 edition of INSTORE[/span]

If you’d like to contribute your own data and receive a personalized KPI report each month, call (877) 910-3343 or e-mail: [email protected].

Advertisement

{loadposition xtra-browncolumn}

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials

If It’s Time to Consolidate, It’s Time to Call Wilkerson

When Tom Moses decided to close one of the two Moses Jewelers stores in western Pennsylvania, it was time to call in the experts. After reviewing two candidates, Moses, a co-owner of the 72 year-old business, decided to go with Wilkerson. The sale went better than expected. Concerned about running it during the pandemic, Moses says it might have helped the sale. “People wanted to get out, so there was pent-up demand,” he says. “Folks were not traveling so there was disposable income, and we don’t recall a single client commenting to us, feeling uncomfortable. It was busy in here!” And perhaps most importantly, Wilkerson was easy to deal with, he says, and Susan, their personal Wilkerson consultant, was knowledgeable, organized and “really good.” Now, the company can focus on their remaining location — without the hassle of carrying over merchandise that either wouldn’t fit or hadn’t sold. “The decision to hire Wilkerson was a good one,” says Moses.

Promoted Headlines

Most Popular